The Effects of Intellectual Capital and Knowledge Management on Business Performance

Abstract

The purpose of this study was to examine the effects of intellectual capital and knowledge management on business performance. This study was conducted in Indonesia. Research respondents were bank employees who had structural positions. Data had been collected by using a survey with questionnaires. We acquired 63 responses out of 80 questionnaires that had been distributed (78,75%). Based on data analysis by using Partial Least Square (WrapPLS 4.0), this study found that intellectual capital had no significant effect on business performance. Knowledge management had a significant effect on business performance. However, the results of this study showed that the simultaneous integration of IC and KM had a 45% effect on business performance. Finally, some limitations and future research are also discussed.